This module describes various predatory business practices by companies. Using scientific resources, describe some specific examples of predatory practices. Should the debtor or borrower bear some responsibility, at least in some cases? Explain why or why not? Predatory business practices are a predatory and unethical approach that a company takes to control the market or maximize its profits. There are several predatory practices at play today, such as predatory lending, predatory mortgage servicing, predatory borrowing, predatory pricing, and more. In this short document, predatory lending will be discussed in detail. Predatory lending: Predatory lending involves “imposing unfair and abusive lending terms on borrowers” ​​(No Author, 2006). Borrowers are incentivized to agree to loan terms that are difficult to defend. Predatory Lending in Home Mortgages: The entire process of predatory lending in home mortgages begins with subprime lending, a type of mortgage given to borrowers with poor credit card scores. These borrowers are more likely to default on their loan and lenders use this as a reason to charge them higher interest rates based on their credit risk score and in some cases lenders charge a rate of excessive interest compared to what is required. Due to their history of default and poor credit history, these borrowers are only eligible for subprime loans. Predatory lenders sometimes inflate property values ​​in order to qualify borrowers with poor credit histories. The subprime loan, granted without any consideration for the debtor's ability to repay, generally uses the house as collateral. In cases where monthly mortgage payments exceeded the debtor's monthly income, foreclosure of the property was inevitable. Another type of abusive tactic used by lenders is cal...... middle of paper ...... Deposit Insurance Corporation (FDIC), Department of Housing and Urban Development (HUD) and the Office of Thrift Supervision (OTS) have led and funded initiatives to educate consumers about predatory lending practices. Government strategies along with consumer education are the only way to combat predatory lending practices pursued by unscrupulous lenders. References: No author. Federal Deposit Insurance Corporation, Office of Auditors. (2006). FDIC Challenges and Efforts Related to (06-011). Retrieved from FDIC Public Information Center website: http://www.fdicoig.gov/reports06/06-011-508.shtmlLarson, MD (July 26, 2001). Lenders are abandoning single premium credit insurance. Retrieved from http://www.bankrate.com/brm/news/mtg/20010726a.aspPeterson, CL (September 7, 2006). Predatory structured financing. Retrieved from http://www.doanlaw.com/pdf/Securitization.pdf